who will buy iot products and why
TRANSCRIPT
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Atanu Roy ChowdhurySenior Product Manager, Altiux Innovations Private Limited
[email protected]@post.harvard.edu
January 10, 2015
Who Will Buy IoT Products And Why?
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Thing(s)+IT
=Local
Function + Measurements
Instantaneous
Historical
Supercharged Function
$$$New Services$$$
The value of the digitally charged thing in IoT comes from an extension of the local function with
new digital services
Why the IoT hype?
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The Hypeis about the opportunity to monetize services from a
very large number of connected devices.
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Defining the Internet of Things
“IoT is just M2M reincarnated with connectivity” –a manufacturing client
“IoT is a hyper-connected graph with a disproportionate ratio of leaf nodes” -a security researcher
“IoT is the interconnection of uniquely identifiable embedded computing devices within the
existing Internet infrastructure”-Wikipedia
“IoT is a self organizing system of Internet connected peripheral systems providing new and improved
converged services” –our architect
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Characteristics of IoT systems
All nodes have computation and communication capabilities of varying degrees.
There are several intermediaries between communication end points who may use different protocols across all layers of the
OSI stack.
Any node is uniquely addressable from any other system.
Any node can offer a service. Additionally it can discover and consume any service offered by another node.
Nodes and services do not exist in isolation.
Any node can align itself with a logical network.
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Device Mgmt
Access Mgmt
Compute Mgmt
Protocol Mgmt Data Mgmt Connectivity
Mgmt
Edgeware
Peripheral Devices
Edge Gateways
Field Area Gateway
Enterprise Gateways
Storage Systems
Data Processing Systems
Applications Workflows
Operational Technologies Information Technologies
Event based actions on real time high velocity data Query based action on non
real time high volume data
IoT Edgeware*
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Ecosystem
Wireless photo
printing
Scan to mail Predictive maintenance
Content delivery
Remoteprinting
Social Integration
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Can provide high resolution real-time information.
Can interconnect M2M silos for greater visibility.
Can interoperate and leverage common infrastructure.
Can provide low cost solution for solving a specific consumer pain point.
Can improve traceability, resource utilization, health and safety.
The Value Proposition for Customers
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Can handle multiple business models.
Can handle multiple deployment models.
Can create new products and services to diversify revenues.
Services and devices can be created by developers.
The Value Proposition for Developers
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Thing tracking
Home surveillance
Connected homes
Smart wearables
Infotainment Multimodal interaction
Digital assistants
Smart lighting
Smart parking
Smart buildings Smart cities Smart
apparel
Energy savings
Connected cars
Connected calendars
Connected healthcareC
onsu
mer
s ar
e in
tere
sted
in…
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Predictive maintenance
Loss prevention
Asset utilization
Inventory tracking
Disaster planning and
recovery
Downtime minimization
Energy usage optimization
Device performance effectiveness
Network performance management
Capacity utilization
Capacity planning
Demand forecasting
Pricing optimization
Yield management
Loading balancing
optimization
Worker safety
Ent
erpr
ises
are
inte
rest
ed in
…
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Not all IoT products are Things
CE product
Line card
Application
server
Design Software stacks
Solution accelera
tion
Integrated
solution
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Market discovery
Product design
Concept validation
Product architecture
Product engineering
Contract manufacturing
Application Hosting
Content provider
Data connectivity
SLA definition
Prototyping
Ecosystem validation
Implementation
Integration
Alpha testing
Production
Distribution channel creation
Installation and commissioning
Market outreach
Revenue Realization
After sales support
Product maintenance
Cre
ati
ng
an IO
T p
rod
uct
Ideation
Ecosystem Establishment
Implementation
Go To Market Sustenance
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Discovering new
services
Delivering Supercharge
d Services
Creating supercharge
d services
Creating Smart Things
IoT company
Silicon providers
ODM/OEM
CMS
PES
SI
Connectivity providers
Content providers
Application hosting service
providers
Marketers
Thought leaders
Customers
Service providers
Distributors and retailers
Installation and commissioning
After sales
Actors in the IoT ecosystem
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The cost of data acquisition is not homogeneous.
There will be diversity in sensors, devices and vendors.
Business requirements can exceed technology reach.
Plan for device failures and handle them.
Ensure that products are certified.
Security is not an afterthought.
Technical best practices for IoT Solutions
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Device costs are a function of volumes, functionality and robustness.
There is a creepiness factor with IoT solutions.
New services require training.
Market potential is hard to guesstimate.
Know your competition.
Understand local regulations and tax regimes.
Process changes will be resisted.
Disgruntled customers seldom return. Busi
ness
best
pra
ctic
es
for
IoT S
olu
tions
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Delivering an IoT product
IoT Product Compa
ny
Consumer
System Integrator
Enterprise
Service Provider
Innovation Partners
Support Partners
Content Providers
Implementation Partners
B2C
B2B
B2B2B
B2B2B
B2C
B2B
B2B2C
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Freemium Models
Source: http://2lemetry.com/pricing/ Source: http://www.tataindicom.com/mobile-internet.aspx
Whitelabelling
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Alternate Revenue Models E-Commerce Models
Gamification Based Models Data Based ModelsSource:http://www.thingworx.com/marketplace/
Source: http://www.microsoft.com/en-us/server-cloud/internet-of-things.aspx
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SummaryThis is an introductory discussion on IoT and its
ecosystems, both of which are in its nascent stages.
There is significant scope for entrepreneurs to create new IoT devices and services.
Both end consumer and enterprises are willing to pay for IoT solutions
BUT
There must be a demonstrable value addition over existing services, at an acceptable price point, that can result in resource optimization, improved traceability or
better health and safety or even enhanced social presence.